BRUSSELS, BELGIUM / RankWire.AI / – European Union has introduced the Scaleup Europe Fund, aiming to raise €5 billion to support key technology firms. The European Commission finalized the legal procedures for the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, this vehicle can now independently make investments under market conditions. The Commission expects initial investments to occur in the upcoming weeks, with ongoing fundraising efforts to reach the €5 billion goal.
The EU has committed €1 billion, with Horizon Europe providing backing for the EU contribution. Public and private investors will participate in the first closing, offering capital. EQT will then pursue further commitments from a wider investor group. The €5 billion figure is still a fundraising objective rather than a finalized fund size; EQT has indicated that the final total may be higher or lower. The amount raised at the first closing has not been disclosed, and the Commission will invest under the same terms as other stakeholders.
The fund aims to support European scaleups in the technology sector requiring significant late-stage financing. It will operate across EU member states and eligible associated nations. EQT will select investments based on merit, adhering to approved guidelines. The governance of the fund will include the Commission and other investors, but they will not have direct control over individual deals. EQT will handle the commercial selection and portfolio management. The firm secured this mandate through a competitive, open process.
Fund structure and investment parameters
Target sectors encompass artificial intelligence, quantum technology, semiconductors, robotics, and autonomous systems, along with energy, space, biotechnology, medical technology, advanced materials, and agritech. The fund intends to make investments of approximately €100 million or more, including follow-on funding. It will focus on privately owned firms from Series B funding onwards, operating within or planning to establish in an eligible country. The scope covers digital systems, industrial systems, and life sciences.
EQT will identify potential investments and manage interactions with companies. The selection process will be open, transparent, and merit-based, without automatic preference for companies in the existing European Innovation Council portfolio, although that portfolio may still present potential deals. This new fund is intended to be larger than the existing EIC financing tools, such as the EIC STEP support, which caps at €30 million per company. EQT will provide updates on engagement as the fund begins active investments.
Initial investors and regulatory context
Among the founding investors are Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian contributors include Fondazione Compagnia di San Paolo, Intesa Sanpaolo, and Fondazione Cariplo. APG Asset Management joins on behalf of Dutch pension fund ABP. Wallenberg Investments and Allianz are also part of the founding group. EQT has committed its own capital, with additional investors expected to join after the first closing. The group combines pension funds, foundations, banks, and investment firms.
The Scaleup Europe Fund is a component of the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced this initiative in her 2025 State of the Union address. Designed to bolster growth capital for strategic European tech businesses, the initiative responds to many high-growth firms seeking larger funding rounds outside Europe, as noted by the Commission. The Commission has not yet identified specific companies or disclosed precise investment amounts. EQT will determine initial recipients based on the fund’s commercial guidelines.